- THORChain is a cross-chain crypto platform built on Cosmos.
- Synthetic assets are generated using a 50/50 mix of RUNE and the target asset.
As a result of the cross-chain DeFi project rolling out synthetic assets and an announcement of a launch date for a suite of new capabilities named “Thorfi,” THORChain gained almost 18 percent in the past 24 hours.
Additionally, the project’s token has seen a significant increase in value as this activity continues. According to CoinMarketCap, RUNE was trading at $4.73 on Monday. Over the last four days, the price has surged by a stunning 24% to $5.98.
For those who don’t want to utilize a third-party exchange like Coinbase or Binance, THORChain is a cross-chain crypto platform built on Cosmos. New derivative goods are being created by combining otherwise incompatible cryptocurrencies, such as Bitcoin and Ethereum.
Development of Synthetic Assets
Many of THORChain’s recent improvements and marketing campaigns are likely to blame the current price spike. Decentralized exchange Thorswap has already witnessed roughly $7 million in trading activity for synthetic assets, which allow users to build derivatives of other popular cryptocurrencies like Bitcoin and Ethereum.
This past Wednesday, THORChain’s synthetic assets were backed by pools of liquidity. Synthetic assets are generated using a 50/50 mix of RUNE tokens and the target asset, instead of wrapped assets like Wrapped Bitcoin, which is backed 1:1.
This asset is like the LP tokens that DeFi customers get as a kind of receipt anytime they put money into a pool on Uniswap or Curve Finance. Owners of synthesized assets may always convert them back to genuine assets by exchanging them 1:1 for the real thing, just as they do with LP tokens.
